The property, a two-story project on 1.11 acres at 27184 Ortega Highway, is called the Capistrano Collection and sold for just under $10.2 million to Orange County-based Needleman Investments. MacLellan says that the rent guarantee, an unusual but not unheard of provision in a sales contract, was a means of maintaining the sales price that had been negotiated for the property.

Built in 1991, the Capistrano Collection is approximately two-thirds retail and one-third office, with a diverse mix of tenants. The deal closed at a cap rate of 5.4% on existing income, a record low cap rate for an office/retail project over $10 million in Orange County, according to Faris Lee.

The property attracted about six or eight offers, according to MacLellan, who says that the prospective buyers consisted primarily of local private investor groups and high-net-worth individuals. He notes that properties in San Juan Capistrano command top prices because of the desirability of the area, the lack of land for development and the difficulty of obtaining entitlements.

In addition to the high barriers to entry, another reason for the high prices paid for commercial properties in the city is its strong demographic profile. The Capistrano Collection's immediate locale, for example, consists of primarily multi-million dollar homes in private, gated communities, with an average household income of more than $117,000 within a three-mile radius of the center.

Buyer Needleman Investments was represented by Tony Azzi, Orbell Ovanespour and Brad Baskin of Marcus & Millichap.